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Emotional Intelligence’s Impact on the Bottom Line

To date, many companies have focused their selection criteria and training programs on hard skills (e.g., technical expertise, industry knowledge, education) and the assessment of personality traits. Topics including competencies like stress management, assertiveness skills, empathy, and political/social acumen were never measured in the selection process or focused on in training and development programs. In reality, these are critical success factors that should not be dismissed, and have a direct impact on the bottom line.

For example, the Hay Group states one study of 44 Fortune 500 companies found that salespeople with high EQ produced twice the revenue of those with average or below average scores. In another study, technical programmers demonstrating the top 10 percent of emotional intelligence competency were developing software three times faster than those with lower competency.

Additional research unearthed the following success stories. A Fortune 500 company in financial services proved that their high EQ salespeople produced 18 percent more than the lower EQ salespeople. One recent study conducted by a Dallas corporation measured that the productivity difference between their low scoring emotional intelligence employees and their high scoring emotional intelligence employees was 20 times. A Texas-based Fortune 500 Company had utilized personality assessments for candidate selection for years with little results in reducing turnover in their high turnover sales force. After turning to an emotional intelligence-based selection assessment and EQ training and development program, they increased retention by 67 percent in the first year, which they calculated added $32 million to their bottom line in reduced turnover costs and increased sales revenues. A large metropolitan hospital reduced their critical care nursing turnover from 65 percent to 15 percent within 18 months of implementing an emotional intelligence screening assessment. A community bank that reduced staff by 30 percent due to the sluggish economy assessed the remaining workforce for their emotional intelligence competencies, placed them in the right role for those competencies, and the bank is now producing more with less people.

Lastly, through a series of recent studies conducted by ZERORISK HR, Inc., a correlation was found among low emotional intelligence and theft and shrinkage. One other study in the construction industry yielded results showing workers with low emotional intelligence had a higher likelihood of getting injured while on the job.

All of these cases are starting to prove the value of having highly emotionally intelligent employees make up your workforce if you want a competitive advantage in this highly competitive business world.

An employee with high emotional intelligence can manage his or her own impulses, communicate with others effectively, manage change well, solve problems, and use humor to build rapport in tense situations. These employees also have empathy, remain optimistic even in the face of adversity, and are gifted at educating and persuading in a sales situation and resolving customer complaints in a customer service role. This “clarity” in thinking and “composure” in stressful and chaotic situations is what separates top performers from weak performers in the workplace. - zeroriskHR website

sample zerorisk test & assessment

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Discover the EQ Competencies
that Correlate to Workplace Success!

… proven to contribute more to workplace achievement than technical
skills, cognitive ability, and standard personality traits combined.

Social Competencies: Competencies that Determine How We Handle Relationships

Intuition & Empathy: Our awareness of others’ feelings, needs, and concerns. This competency is important in the workplace for the following reasons.

• Understanding others: an intuitive sense of others’ feelings and perspectives, and showing an active interest in their concerns and interests
• Customer service orientation: the ability to anticipate, recognize, and meet customers’ needs
• People development: ability to sense what others need in order to grow, develop, and master their strengths
• Leveraging diversity: cultivating opportunities through diverse people

Political Acumen & Social Skills: Our adeptness at inducing desirable responses in others. This competency is important in the workplace for the following reasons.

• Influencing: using effective tactics and techniques for persuasion and desired results
• Communication: sending clear and convincing messages that are understood by others
• Leadership: inspiring and guiding groups of people
• Change catalyst: initiating and/or managing change in the workplace
• Conflict resolution: negotiating and resolving disagreements with people
• Building bonds: nurturing instrumental relationships for business success
• Collaboration and cooperation: working with coworkers and business partners toward shared goals
• Team capabilities: creating group synergy in pursuing collective goals

Personal Competencies: Competencies that Determine How We Manage Ourselves

Self Awareness: Knowing one’s internal states, preferences, resources, and intuitions. This competency is important in the workplace for the following reasons.

• Emotional awareness: recognizing one’s emotions and their effects and impact on those around us
• Accurate self-assessment: knowing one’s strengths and limits
• Self-confidence: sureness about one’s self-worth and capabilities

Self Regulation: Managing one’s internal states, impulses, and resources. This competency is important in the workplace for the following reasons.

• Self-control: managing disruptive emotions and impulses
• Trustworthiness: maintaining standards of honesty and integrity
• Conscientiousness: taking responsibility and being accountable for personal performance
• Adaptability: flexibility in handling change
• Innovation: being comfortable with an openness to novel ideas, approaches, and new information

Self Expectations & Motivation: Emotional tendencies that guide or facilitate reaching goals. This competency is important in the workplace for the following reasons.

• Achievement drive: striving to improve or meet a standard of excellence we impose on ourselves
• Commitment: aligning with the goals of the group or organization
• Initiative: readiness to act on opportunities without having to be told
• Optimism: persistence in pursuing goals despite obstacles and setbacks